Which of the Following Is an Example of U

question 176

Multiple Choice

Which of the following is an example of U.S.foreign portfolio investment?

• A)Albert,a German citizen,buys stock in a U.S.computer company.
• B)Larry,a citizen of Ireland,opens a fish and chips restaurant in the United States.
• C)Nancy,a U.S.citizen,buys bonds issued by a Japanese bank.
• D)Dustin,a U.S.citizen,opens a country-western tavern in New Zealand.

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Definitions:

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.

Net Sales

The total revenue generated from goods or services sold by a company, minus returns, allowances, and discounts.

Gross Profit

The financial result obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

Operating Expenses

Expenses incurred from the normal operations of a business, excluding the cost of goods sold, such as rent, salaries, and utilities.